WORLD BUSINESS BRIEFING | EUROPE; Russia: Plans For a Car Plant

By BLOOMBERG NEWS

Published: May 20, 2008

PSA Peugeot Citro? the European carmaker, and a Japanese rival, the Mitsubishi Motors Corporation have agreed to build sport utility vehicles and midsize cars in Russia, Europe's fastest-growing major auto market. Peugeot will invest as much as 350 million euros ($543 million) in a plant near Kaluga, 112 miles southwest of Moscow, Christian Streiff, the chief executive, said. The factory will initially make 160,000 vehicles a year, of which 50,000 will be S.U.V.'s, and eventually increase production to 300,000. The Peugeot-Mitsubishi plant will open in 2011, employing 3,000 people, Mr. Streiff said. Peugeot will hold a 70 percent stake, he said.